The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers who hire and retain veterans and individuals from other target groups with significant barriers to employment. Employers claim about $1 billion in tax credits each year under the WOTC program.
Companies normally ask candidates during the job offer to complete a Form 8850 which determines if an employer has hired an employee who might be eligible for a WOTC. The second page of the 8850 is completed on the employee’s date of hire.
